2. How Much RE-Shoring is
Occurring?
• Boston Consulting Group’s report in 2012 had
everyone expecting “25% Re-Shoring to the USA in
the next 5 years” Not going to happen!
• However, we are seeing a resurgence in Mexican
Manufacturing in auto, home goods and other
“heavy products” for US consumption.
• AND…we are seeing a huge ‘boom’ in basic, heavy
manufacturing being started up in the USA-plastics,
chemicals, steel, basic metals – all based around
Cheap Natural Gas for the next 100 years.
3. Chemical, Resin and Plastics MFG.
• 191 new or expansions in petrochemical
processing
• This is $117 billion in the US petrochemical industry
• By 2020, the cumulative impact will boost real GDP
by 2.0% to 3.3%
• Creating from 2.7 million to as high as 3.6 million
new jobs.
• Representing cumulative capital investments
totaling $117.0 billion in the United States, fully
62% of this is foreign direct investment.
• 62% of this investment is foreign direct investment
Source: American Chemical Council, 2014
4. Here is a look at the Evidence for Mexico!
www.imsw.com
Foreign Trade Zone, Logistics and Supply Chain Consulting
6. Since 2003, wages in Mexico
have risen only 25%
compared to 218% in China
5
SOURCE: International Labour Organization, U.S. Bureau of Labor
Statistics
U.S. Dollar
www.imsw.com
Foreign Trade Zone, Logistics and Supply Chain Consulting
2011-2013
WSJ
7. Supply Chain Innovation:
Intermodal Routing
New Options
By
Curtis Spencer
President, IMS Worldwide Inc.
8. Shanghai to North American Ports: Slow Steaming
Effects –2000 & 2014
Pricing as of June 20, 2014
From China, it takes about 2 wSoeuerckes: Stohi pbmrienngtL icnka.rcgomo (toEv e trhgree ewn)e Ssati ling Schedules
coast and about 4 weeks to bring it in on the east coast. (2000)
35
17
34
36 36
17
$1,720
$3,214
$3,165
$1,200
$800
9. Seattle/
Tacoma
Los Angeles /
Long Beach
Intermodal Routes to Major Inland Ports
Lazaro
Cardenas
Oakland
Chicago
Dallas/
FW Atlanta
Houston
Cent. PA
Norfolk
Columbus
Savannah /
Charleston
Prince
Rupert
Mexico
City
Memphis
Kansas
City
NY/NJ
Jacksonville
Vancouver
10. East Coast-West Coast TEU
Cost Line Equilibrium-September 2014
z
Megapolitans
Sources: Population, employment, and real estate growth forecasts by
Robert Lang and Arthur Nelson of the Metropolitan Institute at Virginia Tech
and Phil Hopkins of Global Insight; Business 2.0, November 2005
I-35 Corridor
+40%
Gulf Coast
Belt +31%
Cascadia
+38%
Norcal
+35%
Southland
+35%
Valley of
the Sun
+81%
Great Lakes
Horseshoe +10%
Atlantic
Seaboard
+12%
Southern
Florida
+52%
Equilibrium
Line Q2 2014
I-85 Corridor
+35%
11. About IMS Worldwide Inc.
• IMSW has completed over 325 FTZ Projects during 45
years. We have conducted 36 Logistics/Drayage
studies for Industrial RE firms, RRs and land-owners.
• We work with Large Gateway Zones (Houston, LA,
Miami, Dallas, Chicago, PHX, El Paso and NJ)
• We work with Fortune 1000 companies: Target, The
Limited, Dell, Home Depot, Abbott Labs, TJX, Dicks
Sporting Goods, CEVA, FedEx, UPS, Yusen, NFI,
Nippon Express, etc.
• We work with the largest REITs in the USA: LPT
Prologis, Duke, Majestic, Clarion, USAA, IIT, etc.
www.imsw.com
Foreign Trade Zone, Logistics and Supply Chain Consulting
12. IMSW Overview of National FTZ and
Strategic Development Projects 1977-
2014
www.imsw.com
Foreign Trade Zone, Logistics and Supply Chain Consulting